CEOs dealing with the economic crisis in Morocco : the prospect of insolvency, Bassamat Fassi-Fihri

CEOs dealing with the economic crisis in Morocco : the prospect of insolvency, Bassamat Fassi-Fihri

Publié le : - Auteur : Bassamat Fassi-Fihri, Hanane Aït Addi, Zineb Laraqui

The current global crisis has surprised governments around the world due to its scale and its brutality. The consequences of the pandemic on the Moroccan economy are very difficult to evaluate at this time, but it is certain that a drastic drop in the GDP can already be predicted since there has been a significant drop in turnover for many sectors of the economy.

The Moroccan government, in an attempt to mitigate the effects of the health crisis on the economic situation of companies, has enacted a certain number of measures.

Essentially, such amendments are aimed at postponing tax deadlines, reducing payroll costs by setting up a tax-exempt assistance benefit, and implementing the help of financial institutions in order to support companies through the provision of State-guaranteed credit.

However, those loans, although necessary, cannot benefit all companies and, in the majority of cases, cannot enable them to overcome the financial difficulties resulting from the health crisis.

In fact, despite the decisions made by the Government to support businesses, the COVID-19 crisis may leave almost no business sector unscathed, in Morocco, as in many other countries. Some sectors, such as transport, tourism, restaurants, business services, trade, industry, construction and public works, communications and event planning, risk suffering considerable losses.

According to a survey conducted by the Moroccan Confederation of VSE-SMEs, 83% of companies have been totally shut down.

Companies are legitimately wondering about the legal arrangements available to them in order to save their companies, protect jobs, and account for the interest of their creditors.
The law governing companies in difficulty is indeed closely linked to the economic situation.

It is to be expected that, as soon as the courts are back in session, many companies will make use of the difficulty handling procedures.

However, it is essential to establish a diagnosis in order to analyze the appropriate measures to be implemented (I) in order to determine the most appropriate legal procedure for handling difficulties, based on the nature and severity of the difficulties (II)  being specified that Moroccan lawmakers have not made specific changes to the company difficulty handling deadlines (III)

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